Summary

GAO reviewed the Centers for Medicare and Medicaid Service's (CMS) new rule on the cost limit for providers operated by units of government and provisions to ensure the integrity of federal-state partnership. GAO found that (1) the final rule clarifies that entities involved in the financing of the non-federal share of Medicaid payments must be a unit of government, clarifies the documentation required to support a Medicaid expenditure, limits the amount of Medicaid reimbursement for health care providers that are operated by units of government, requires all health care providers to receive and retain the full amount of computable payments under Medicaid state plans, and makes changes to the State Child Health Insurance Program; and (2) CMS complied with applicable requirements in promulgating the rule.